Brach's and Teamsters Local 738 Reach Agreement.

Business Editors

CHICAGO--(BUSINESS WIRE)--March 30, 2001

Brach's Confections, Inc. and Teamsters Local 738 announced today they have reached a joint agreement that will define the severance terms concerning the company's Chicago manufacturing facility. The agreement came less than three months after Brach's announced a phase-out of its manufacturing operations in Chicago.

"It was unfortunate that we had to come to this point given our long history in Chicago, and the dedication and quality of our employees," said Kevin Kotecki, Brach's president. "It was important for Brach's to come to an equitable agreement with the union to help transition the affected employees into new employment or provide opportunity for retirement. We are pleased the process went smoothly and the agreement was reached cooperatively."

Brach's management noted that the terms of the agreement exceed those in the current contract and include provisions for severance pay, medical and retiree benefits and outplacement services for employees. Kotecki cited open and honest communication with the union as the driving force behind a severance package that is better than those recently offered by other area employers who have announced cutbacks.

Brach's management held meetings for salaried employees to provide benefit details. "I truly believe it was important for all of our employees to have information that provides clarity and certainty about the future for themselves and their families," said Kotecki.

On January 11, 2001 Brach's announced plans for a phased shutdown of its nearly century-old manufacturing complex in Chicago due to unavoidable forces affecting the business including an antiquated facility, rising costs of sugar and continuing consolidation of global candy manufacturers. The shutdown is scheduled to conclude by the end of 2003. No more than 160 of Brach's 1,100 Chicago employees will be affected during the current year. The present executive management team will continue to be based in Chicago.

Founded in 1904 by Emil J. Brach, Brach's Confections, Inc. is a leading producer of high quality candy. The privately held company produces nearly 200 varieties of candy including fruit snacks, chocolates and hard candies. Brach's is best known for its StarBrite Mints(R), Milk Maid Caramels(R) and Maple Nut Goodies(R). In addition to Chicago, Brach's manufactures its products in Chattanooga, Tennessee and Winona, Minnesota.